Page 11 - AsianOil Week 17 2021

AsianOil SOUTHEAST ASIA AsianOil

Vires is targeting start-up of its project by to develop the Philippines as an LNG hub in
January 2023. Local media have reported that the Southeast Asian region,” stated DoE secre-
the company will use the BW Paris FSRU for tary Alfonso Cusi.
the scheme, but that vessel has already been The government has now approved at least
hired by First Gen for its own LNG import six regasification projects for Luzon, the Phil-
project in the country, which is one of the ippines’ most populous island. However, the
Philippines’ most advanced and also set to be country needs to move quickly to develop new
located at Batangas. This has led to speculation LNG import capacity as domestic resources are
that either the local media reports are inaccu- increasingly depleted, and has been accused of
rate, or Vires is planning to supply its power lacking a coherent strategy for the role of the
plant from First Gen’s project. super-chilled fuel in its energy mix.
“The proposed integrated natural gas-fired Vires is a gas-focused company that was
power plant and LNG storage and regasifica- acquired by Philippines-based A Brown Co. in
tion terminal project of Vires Energy Corpo- 2020, having previously been owned by Singa-
ration will boost the attainment of our vision pore’s Argo Group.™

EAST ASIA

Nigerian president returns four

licences to Sinopec’s Addax

PROJECTS & NIGERIAN President Muhammadu Buhari has Nigeria’s existing Petroleum Law provides for
COMPANIES transferred licences for four oil-bearing blocks the revocation of licences when investors fail to
back to Addax Petroleum, which is controlled by move forward with work at their assigned sites,
China’s state-owned Sinopec. This move reverses Auwalu added. Under this law, “the first reason
a decision made earlier this month by Nigeria’s for a revocation is when you discover that the asset
Department of Petroleum Resources (DPR). is not being developed according to the business
Buhari’s office issued a statement confirming guidelines, because it is economic sabotage,” he was
the return of the licences to Sinopec, which is quoted as saying in a DPR statement.
owned by the Chinese government, on April 23. Despite these reassurances, the department’s
It said the president had taken this step so as to decision was unusual, as Nigerian authorities
uphold legal norms and demonstrate its “com- rarely take licences away in this fashion. Like-
mitment to the rule of law, fairness and enabling wise, they do not usually follow such a move by
a stable business climate for investment.” transferring the assets in question to other inves-
Overturning the DPR’s decision effectively tors, but DPR awarded the four licence areas to
“reaffirms the commitment of President Buhari other companies – namely, Kaztec Engineering
to the rule of law and sanctity of contracts,” it and Salvic Petroleum Resources, both based in
added. Nigeria – very shortly after rescinding Addax’s
The department rescinded Addax’s licences rights. (As of press time, neither of the Nigerian
for OML 123, OML 124, OML 126 and OML firms had commented publicly on the matter.)
137 on April 6. At the time, Sarki Auwalu, DPR’s Some observers have speculated that Buhari’s
director, said he had taken this decision because decision was driven by concern about the pos-
the company was not upholding its commitment sibility of angering the Chinese government,
to develop these sites, as spelled out in its agree- which controls Sinopec. Beijing is one of Abuja’s
ment with state-run Nigerian National Petro- creditors, and state-controlled Chinese banks
leum Corp. (NNPC). “Addax refused to develop have lent NNPC and other Nigerian companies
the assets, and Addax [was] therefore not oper- billions of dollars to cover the cost of infrastruc-
ating the assets,” he declared. ture projects.™

Week 17 29•April•2021 www. NEWSBASE .com P11